Question

To ensure the accuracy of inventory accounted for using a perpetual system, physical counts ______

a) aren't needed
b) detect theft
c) detect bookkeeping errors
d) detect shrinking

Answer 1

Physical counts are necessary to ensure the accuracy of inventory accounted for using a perpetual system. They help detect bookkeeping errors, theft, and shrinkage.

Step-by-step explanation:

In order to ensure the accuracy of inventory accounted for using a perpetual system, physical counts are necessary. This is because physical counts help to detect bookkeeping errors, as well as identify any instances of theft or shrinkage that may have occurred. By comparing the physical inventory count to the recorded inventory count, discrepancies can be identified and appropriate actions can be taken to correct them.